General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
randolphdeleon, comosicama, Dag1996, trose178,
Thanks to all of you for reading my article. I think General Electric currently looks like a solid dividend growth opportunity with long-term appeal. I am hopeful that their biggest problems are behind them and that the company has once again found its footing. As I said in a previous comment, this is a major brand with a long legacy and history.
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
cymbalta,
I am hopeful that the future for GE turns out to be as bright as my article reflects it to be. I've not yet taken a position in the stock, but is currently at the top of my prospects for purchase. I'm a little more work to do, but I am leaning towards taking a long-term position.
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
db313706,
To repeat my response to the same question above:
Thanks, the estimated earnings and return calculator FAST Graph in the article presents my expectation of the future over the next five years. On that basis, it appears that General Electric would provide double-digit annualized returns plus a 3.3% current yield that's expected to grow in concert with earnings.
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
AggGrow,
Thanks. Regarding General Electric's P/E ratio, I believe you are referring to the PE based on trailing 12 months earnings. The FAST Graphs in the article express what we call a blended PE which includes a blend of the past, present, and a pro rata share of future estimated earnings.
Personally, I believe a blended P/E ratio is better because I am not buying the past when I invest, I am buying the future. On a blended PE ratio basis General Electric is trading at what I would call a fair value PE of 15.8 (look to the Fast Facts to the right of the graphs)..
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Mike,
Thanks. However, as the long-term historical FAST Graph illustrates, June of 2008 was a very unfortunate time to start a position in General Electric. The thesis of this article was partially about what caused General Electric's problems (i.e. GE capital), and the other part about how the company has been recovering since 2010.
Personally, I've been giving the stock sometime to see if it's truly in the recovery mode. I think it is, and am hopeful that it learned its lessons well. General Electric is starting to remind me of how IBM turned its business around in the late 1980s, and then became a powerful growth story ever since. Iconic brands such as IBM and General Electric can be more powerful than they are sometimes given credit for.
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
richardod,
Thanks, the estimated earnings and return calculator FAST Graph in the article presents my expectation of the future over the next five years. On that basis, it appears that General Electric would provide double-digit annualized returns plus a 3.3% current yield that's expected to grow in concert with earnings.
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
David,
Thanks. Personally, I feel that GE is very attractive at today's levels considering the 3.3% dividend yield and the expected 10% growth. Like you, I love undervaluation when I can find it, but I try not to turn my nose up at a great business at a fair price. Therefore, I'm looking hard at this one for a potential purchase.
Chicago Bridge & Iron Company: Fundamental Stock Research Analysis [View article]
vneathery,
The graph in this article is dated may 15 and price is $57.76. Current FAST Graph price is $63.41, yesterdays close. This explains the higher PE.
Regarding Yahoo and Fidelity they are using trailing twelve months Note on Yahoo the letters ttm after the PE. FAST Graphs uses a blended PE which includes current earnings and a prorata portion of estimated EPS. We believe this more accurately reflects valuation.
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued [View article]
Dave,
The forecast graph "Estimated Earnings and Return Calculator" will as you say illustrate fair value based on current estimates. However, the historical graphs are dynamic and will calculate historical valuation based on historical growth.
For example CSCO has a 21year (20 yrs hist and current year) of 24.5. Since this is above 15 % the fair value formula PE = Growth rate draws an orange line at a 24.5 PE. This shows historical fair value. However, a 15 year graph shows a growth rate of 12.7% which is less than 15%, and therefore the extrapolated PE=Growth Rate and Graham Dodd Formula is automatically applied (GDF-PEG) and applies a 15 fair value PE.
The important point is that this shows growth slowing over the years alerting the subscriber to that important fact. A 6yr graph will show an even lower growth rate and how the market price adjusts.
But as you said, we learn from the past, but we invest in the future, therefore buy ,sell or hold decisions are best made based on best estimates of future growth (present tense).
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued [View article]
tallguyz,
Thanks for sharing your views. The reason I use 15 year graphs most of the time is because they are the longest where we type in all data. As you know, I have often stated and promoted that subscribers should always run multiple time frames because a great benefit of FAST Graphs is their dynamic nature.
However, when presented in an article, they are just a picture and their dynamic benefit is lost. I have tried to include live graphs in the past, but SA and other sites have declined.
Furthermore, the fair value calculation on any company is best made on the future potential growth rates etc. As I mentioned in this article, there is one year of forecast on all historical graphs. Additionally, I have grave concerns about putting too much weight on times frames near or around recessionary periods because numbers are often distorted during these times.
Finally, a great benefit of the FAST Graph research tool is the perspective they provide on the long term track record that the business has generated-earnings,div... including payout ratios etc. I agree that the "dead" FAST Graph is not ideal, but I further contend that they are far superior to spread sheets of numbers or simple stats like the 5year growth rate is X.
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Thanks to all of you for reading my article. I think General Electric currently looks like a solid dividend growth opportunity with long-term appeal. I am hopeful that their biggest problems are behind them and that the company has once again found its footing. As I said in a previous comment, this is a major brand with a long legacy and history.
Regards,
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Me too.
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
I am hopeful that the future for GE turns out to be as bright as my article reflects it to be. I've not yet taken a position in the stock, but is currently at the top of my prospects for purchase. I'm a little more work to do, but I am leaning towards taking a long-term position.
Regards,
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
To repeat my response to the same question above:
Thanks, the estimated earnings and return calculator FAST Graph in the article presents my expectation of the future over the next five years. On that basis, it appears that General Electric would provide double-digit annualized returns plus a 3.3% current yield that's expected to grow in concert with earnings.
Regards,
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Thanks. Regarding General Electric's P/E ratio, I believe you are referring to the PE based on trailing 12 months earnings. The FAST Graphs in the article express what we call a blended PE which includes a blend of the past, present, and a pro rata share of future estimated earnings.
Personally, I believe a blended P/E ratio is better because I am not buying the past when I invest, I am buying the future. On a blended PE ratio basis General Electric is trading at what I would call a fair value PE of 15.8 (look to the Fast Facts to the right of the graphs)..
Regards,
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Thanks. However, as the long-term historical FAST Graph illustrates, June of 2008 was a very unfortunate time to start a position in General Electric. The thesis of this article was partially about what caused General Electric's problems (i.e. GE capital), and the other part about how the company has been recovering since 2010.
Personally, I've been giving the stock sometime to see if it's truly in the recovery mode. I think it is, and am hopeful that it learned its lessons well. General Electric is starting to remind me of how IBM turned its business around in the late 1980s, and then became a powerful growth story ever since. Iconic brands such as IBM and General Electric can be more powerful than they are sometimes given credit for.
Regards,
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Thanks, the estimated earnings and return calculator FAST Graph in the article presents my expectation of the future over the next five years. On that basis, it appears that General Electric would provide double-digit annualized returns plus a 3.3% current yield that's expected to grow in concert with earnings.
Regards,
Chuck
General Electric Looks As If It's Becoming The Shareholder-Friendly Company It Once Was [View article]
Thanks. Personally, I feel that GE is very attractive at today's levels considering the 3.3% dividend yield and the expected 10% growth. Like you, I love undervaluation when I can find it, but I try not to turn my nose up at a great business at a fair price. Therefore, I'm looking hard at this one for a potential purchase.
Regards,
Chuck
Chicago Bridge & Iron Company: Fundamental Stock Research Analysis [View article]
The graph in this article is dated may 15 and price is $57.76. Current FAST Graph price is $63.41, yesterdays close. This explains the higher PE.
Regarding Yahoo and Fidelity they are using trailing twelve months Note on Yahoo the letters ttm after the PE. FAST Graphs uses a blended PE which includes current earnings and a prorata portion of estimated EPS. We believe this more accurately reflects valuation.
I hope this clarifies things,
Chuck
Will Caterpillar Bulldoze My Portfolio Higher? [View article]
Thanks for the mention. I enjoyed the article, well done.
Regards,
Chuck
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued [View article]
The forecast graph "Estimated Earnings and Return Calculator" will as you say illustrate fair value based on current estimates.
However, the historical graphs are dynamic and will calculate historical valuation based on historical growth.
For example CSCO has a 21year (20 yrs hist and current year) of 24.5. Since this is above 15 % the fair value formula PE = Growth rate draws an orange line at a 24.5 PE. This shows historical fair value. However, a 15 year graph shows a growth rate of 12.7% which is less than 15%, and therefore the extrapolated PE=Growth Rate and Graham Dodd Formula is automatically applied (GDF-PEG) and applies a 15 fair value PE.
The important point is that this shows growth slowing over the years alerting the subscriber to that important fact. A 6yr graph will show an even lower growth rate and how the market price adjusts.
But as you said, we learn from the past, but we invest in the future, therefore buy ,sell or hold decisions are best made based on best estimates of future growth (present tense).
I hope that clarifies things,
Chuck
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued [View article]
Thanks for sharing your views. The reason I use 15 year graphs most of the time is because they are the longest where we type in all data. As you know, I have often stated and promoted that subscribers should always run multiple time frames because a great benefit of FAST Graphs is their dynamic nature.
However, when presented in an article, they are just a picture and their dynamic benefit is lost. I have tried to include live graphs in the past, but SA and other sites have declined.
Furthermore, the fair value calculation on any company is best made on the future potential growth rates etc. As I mentioned in this article, there is one year of forecast on all historical graphs.
Additionally, I have grave concerns about putting too much weight on times frames near or around recessionary periods because numbers are often distorted during these times.
Finally, a great benefit of the FAST Graph research tool is the perspective they provide on the long term track record that the business has generated-earnings,div... including payout ratios etc. I agree that the "dead" FAST Graph is not ideal, but I further contend that they are far superior to spread sheets of numbers or simple stats like the 5year growth rate is X.
Regards,
Chuck
My Top 10 Fairly Valued Fast-Growing Stocks [View article]
I appreciate the correction.
Regards,
Chuck
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued [View article]
Thanks.
Chuck
The Dow Hits All-Time Highs, But The Truth Is It Remains Cheaply Valued [View article]
Thanks, glad you find my work helpful.
Regards,
Chuck